A New York developer planning to tap demand for high-end living in Manhattan's West Village by renovating a former parking garage into a condominium building has landed an additional funding source to help finish the ultra-luxury project.
Four of the units have already sold, according to lender Marathon Asset Management, and at record prices.
Alf Naman Development secured a $120 million construction loan, Marathon said this week in a statement. The money will go toward transforming 125 Perry St. into two penthouses, two townhouse-style residences, and three loft-style units. Real estate investment firm Ascendant Capital Partners is also helping to fund Naman's project, where construction is expected to finish in 2026.
The rarity of converting a garage into condos has already drawn interest and big bucks to Naman and the project. The four units are under contract for a total of more than $100 million, commanding what Marathon described as “the highest price per square foot sales” in New York’s new development history.
Naman bought 125 Perry — also known as the Greenwich Village Garage — for $64 million in May 2022, the Times of London reported.
One of the two penthouse units went under contract in February for $57.5 million, according to a listing on Homes.com. One of the townhouses is under contract for $32 million.
In contrast, in the third quarter the Manhattan luxury market had a median sale price of $5.76 million, according to a Douglas Elliman report compiled by appraisal firm Miller Samuel.
Wealthy buyers are pushing prices higher at other properties in the West Village too. In February, an unknown buyer purchased a townhouse in the West Village for a record $72.5 million, the Wall Street Journal reported.
Artist haven
Opened in 1931, the parking garage had a front-row view of the West Village's evolution from a working-class hub of European immigrants to one of New York's most vibrant artist scenes. The area eventually landed a new nickname — Little Bohemia — as Bob Dylan, John Lennon and Jackson Pollock all took residence there at some point in their careers. Little Bohemia is no longer the place where prominent musicians and poets hang out, but 125 Perry is still one of the last remaining structures that was around when the West Village was in its artistic heyday.
Today, home prices in the West Village easily reach the six- and seven-figures because most buildings in the neighborhood are landmarked, which prevents new developments from sprouting up. Most West Village buildings are prewar, brick structures or brownstone walk-ups.
Jim St. André and Stephen Ferrara, the two listing agents at Compass tasked with selling units at 125 Perry, did not immediately respond to a request for comment.
Under Naman's plans, the building will keep its original facade. Inside, residents are expected to have access to a doorman, fitness center, pickleball court, a spa and sauna, as well as limited parking spaces.
CoStar News reporter Andria Cheng contributed.
